Managing probity in Public Construction Procurement (Direction and Instruction 4.2)

Direction 4.2 and Instruction 4.2 explains the requirements for systems to manage probity in procurement and the circumstances when a probity plan is required.

Managing probity in Public Construction Procurement (Direction 4.2)

Effective date: 1 July 2018

Principles

Probity is specifically identified in the procurement principles.

Of particular relevance to this Direction are the following construction procurement principles:

  • treating all tender participants fairly and equally;
  • conducting Public Construction Procurement in an open and transparent manner ensuring defensibility of processes; and
  • undertaking Public Construction Procurement in accordance with the relevant legislation, policy, guidance and any mandatory requirements in these Directions.

4.2 Managing probity in Public Construction Procurement

Agencies must have appropriate systems in place to ensure probity for all Public Construction Procurement including where required by the Instructions:

(a) a probity plan; and

(b) using a probity practitioner.

Managing probity in Public Construction Procurement (Instruction 4.2)

Effective date: 1 July 2018

Objective:  To define the requirements for probity plans and when to involve probity practitioners

4.2.1 Systems and processes to manage probity

Agencies must have appropriate systems and processes in place to manage probity in Works or Construction Services, to ensure they are able to conduct the procurement in line with the principles in Direction 4.1.

4.2.2 Probity plan

In addition to the general systems and processes required to manage probity in the procurement of Works or Construction Services, the Agency undertaking the procurement must prepare a probity plan before beginning a tender process if the Works or Construction Services being procured are:

(a) likely to exceed $10 million (inclusive of GST); or

(b) complex or otherwise high risk.

The probity plan must address:

(a) probity responsibilities;

(b) probity risks and related management strategies;

(c) probity services to be provided by internal or external advisers to support the procurement, which may include engaging a probity practitioner where the complexity of the procurement warrants independent process oversight;

(d) applicable legal obligations, procurement rules and policies; and

(e) processes for managing communications, security and confidentiality during the tender process.

Tools resources and assistance

Managing probity in Public Construction Procurement (Direction and Instruction 4.2) are supported by non-mandatory guidance Managing probity in Public Construction Procurement (Guidance 4.2).

The Practitioners Toolkit includes key documents, guidance and information relating to the Ministerial Directions and Instructions.

For further information about the Ministerial Directions and Instruction for public construction procurement, please contact the Construction Policy Team.

Reviewed 02/07/2018
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